Deepak Construction Co Vs State of Assam (Gauhati High Court)
The petitioner, a partnership firm registered under the CGST and AGST Acts, had its GST registration cancelled by the Deputy Commissioner of State Tax due to non-filing of returns for a continuous period exceeding six months. A show cause notice dated 05.04.2024 was issued, granting 30 days to respond and warning that failure to reply or appear would result in an ex parte decision. As no response was submitted within the stipulated time, the authority passed an order on 21.07.2024 cancelling the registration.
The petitioner contended that due to lack of familiarity with the online GST portal, it failed to access the notice and could not file a reply or attend the hearing. By the time the petitioner became aware, the deadline had expired and the cancellation order had already been issued. Aggrieved, the petitioner approached the High Court and expressed willingness to comply with the requirements under the proviso to sub-rule (4) of Rule 22 of the CGST Rules, 2017, including filing pending returns and paying dues along with applicable interest and late fees.
The Court examined Section 29(2)(c) of the CGST Act, 2017, which permits cancellation of registration for failure to file returns for six months, and Rule 22 of the CGST Rules, 2017, which prescribes the procedure. It noted that the proviso to Rule 22 allows the proper officer to drop cancellation proceedings if the taxpayer furnishes all pending returns and pays outstanding dues.
